10-Q · April 8, 2026
Franklin Covey reported essentially flat quarterly revenue of $59,647,000 (vs $59,612,000 prior year) but recorded an operating loss of $1,999,000 and a net loss of $1,982,000 for the quarter. Operating cash flow for…
Earnings analysis · 10-Q
FC earnings analysis
Filed July 7, 2026 · Our reading of the company's report
The latest report
Franklin Covey's Q3 2026 results reflected a minor year-over-year revenue increase but fell short of analysts' expectations in both revenue and earnings per share. The Enterprise Division saw growth, but challenges in…
Read full summary
Franklin Covey's Q3 2026 results reflected a minor year-over-year revenue increase but fell short of analysts' expectations in both revenue and earnings per share. The Enterprise Division saw growth, but challenges in the International and Education segments impacted overall performance. Management remains optimistic about future growth driven by increased revenues and adjustments in the go-to-market strategy, although geopolitical and economic uncertainties persist.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.27
- Segment
- Enterprise Division: $48.1M, Education Division: $19.0M, International Division: $10.1M
What stood out
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Slight Revenue Growth YoY
Q3 revenue increased by 1% to $67.8 million compared to $67.1 million in the prior year.
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Decrease in Operating Expenses
Operating expenses fell by $7.6 million to $45.9 million, primarily due to reduced restructuring charges.
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Improved Adjusted EBITDA
Adjusted EBITDA increased 14% to $8.3 million compared with $7.3 million in the prior year.
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North America Segment Revenue Growth
North America segment revenue grew 3% to $38.0 million in Q3 2026.
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Deferred Revenue Increase
Deferred revenue rose by $6.7 million, or 7%, to $96.0 million as of May 31, 2026.
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Cash Position Remains Strong
Liquidity includes $12 million in cash and a $62.5 million credit line available.
What to watch
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Lower Than Expected EPS
EPS was reported at $0.27, missing estimates of $0.34 by a significant 20.6%.
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Continued Geopolitical & Economic Uncertainties
Management highlighted ongoing geopolitical tensions impacting revenue growth and future forecasts.
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Reduced Revenue Guidance
FY 2026 revenue guidance revised down to $260-$267 million from $265-$275 million.
Management's outlook
FY 2026 revenue guidance revised downward due to timing shifts and geopolitical tensions.
Earlier filings 4
10-Q · April 8, 2025
Franklin Covey reported quarterly revenue of $59.6 million (down from $61.3M a year ago) and a GAAP net loss of $(1.1) million, or $(0.08) per diluted share. Operating results slipped to an operating loss of $(1.5)…
10-Q · January 10, 2025
Franklin Covey reported quarterly revenue of $69.1 million, up 1% year‑over‑year, while operating income declined to $1.5 million and GAAP diluted EPS fell to $0.09 (from $0.36 a year earlier). Education Division was a…
10-Q · July 8, 2024
Franklin Covey reported quarterly revenue of $73.4M, up from $71.4M year-over-year, with gross margin improving to 76.6% and operating income rising to $8.3M. Net income was $5.7M, or $0.43 per diluted share, and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.